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Master Circular on Money Transfer Service Scheme (MTSS)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2011-12/14 · issued 22 Mar 2012 · ~2 min read

Quick answerRBI's Master Circular consolidates MTSS rules for inward personal remittances via Indian Agents. Only family maintenance and tourist remittances are allowed; outward transfers are prohibited. Agents must be AD-I, AD-II, or FFMC. The circular had a one-year sunset clause ending July 1, 2012.

What changed

This Master Circular No.14/2011-12 consolidated all existing instructions on the Money Transfer Service Scheme into a single document. It was issued with a sunset clause of one year, meaning it would stand withdrawn on July 1, 2012, and be replaced by an updated version.

What it means for you

For banks and authorized persons acting as Indian Agents, this circular provides a unified reference for MTSS compliance, including KYC/AML/CFT guidelines. It reinforces that only inward personal remittances are permissible, and no outward remittances are allowed under the scheme. Agents must ensure tie-ups with reputed Overseas Principals and adhere to reporting requirements.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Ensure your entity is an Authorised Dealer Category-I, II, or Full Fledged Money Changer before applying as an Indian Agent.
Submit applications to RBI's Forex Markets Division with audited financials, Overseas Principal details, and branch list.
Comply with KYC/AML/CFT guidelines for all MTSS transactions and submit quarterly remittance statements.
Verify that no outward remittances are processed under MTSS; only inward personal remittances are allowed.

Who it affects

Authorised Dealer Category-I banks, Authorised Dealer Category-II entities, Full Fledged Money Changers (FFMCs), Overseas Principals (money transfer companies), Sub-Agents appointed by Indian Agents

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 00:52 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What types of remittances are allowed under MTSS?

Only inward personal remittances, such as family maintenance and remittances for foreign tourists visiting India. Outward remittances from India are not permitted.

Who can apply to become an Indian Agent under MTSS?

Only Authorised Dealer Category-I banks, Authorised Dealer Category-II entities, or Full Fledged Money Changers (FFMCs) can apply to RBI for permission.

What is the sunset clause mentioned in this circular?

The circular had a one-year sunset clause, meaning it would be withdrawn on July 1, 2012, and replaced by an updated Master Circular on the same subject.

📜 Read the original circular — full text as issued by RBI

RBI/2011-12/14 
 Master Circular No.14 /2011-12 
 (Updated as on March 22, 2012) 
 July  1, 2011 
 To
 All Authorised Persons, who are Indian Agents under
 the Money Transfer Service Scheme
 Madam / Sir,
 Master Circular on Money Transfer Service Scheme 
 Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS.
 2. This Master Circular consolidates the existing instructions on the subject of “Money Transfer Service Scheme” at one place. The list of underlying circulars/ notifications is set out in Appendix .
 3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2012 and will be replaced by an updated Master Circular on the subject.
 Yours faithfully,
 (Meena Hemchandra) 
 Chief General Manager-in-Charge 
 INDEX 
 PART-A

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/14 · issued 22 Mar 2012. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6505&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.